The number of insolvency-related activities in the North West rose more than 20% in January compared to the same month in 2023, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 303 cases of insolvencyrelated activity in the North West in January – 20.2% more than January 2023’s total of 252.
Fran Henshaw (pictured), Chair of R3 in the North West, says: “The yearly rise in insolvency-related activity in the North West reflects the ongoing mix of challenges businesses in the region are currently facing.
“High energy, fuel, and product and material costs, coupled with demands for increased wages and constrained spending have been putting businesses under strain for the past year, and coming so soon after the pandemic have meant an increasing number of businesses are turning to an insolvency process to resolve their financial issues.”
The North West figure for insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, was the second highest for any the UK’s regions and nations in January, falling only behind Greater London (412).
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “In times like these, it’s crucial business owners and directors in the North West keep a close eye on their finances and act quickly to as soon as they become concerned.
“If you're noticing early warning signs like declining sales, cash flow problems, or not being able to pay bills on time, that’s the time to seek advice from a qualified source.
“Taking action at an early stage opens up more potential solutions and gives you greater control over your situation than if you'd waited for issues to escalate.”